Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

All are the limitations of accounting standards except _________.

  1. it is difficult to choose the different alternatives between different accounting treatments

  2. they may lead to the rigidity

  3. they cannot override the statute

  4. difference in accounting standards are bound to be there due to difference in tradition and legal system in different countries
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The limitations of accounting standards are that they may lead to rigidity, they cannot override the statute and difference is accounting standards are bound to be there due to difference in tradition and legal system in different countries. 

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Which of the following is one of the objectives of accounting standard?

  1. To standardize diverse accounting practices and policies

  2. To improve financial performance of business enterprises

  3. To minimize tax liabilities

  4. All the three
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Accounting standards set to make financial statement more meaningful and comparable. Accounting standards provides a standards set of accounting policies, procedures, valuation methods and disclosure requirements on the basis of which financial statements are prepared.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

The disadvantage of accounting standard is _________.

  1. It facilitates the comparison of non-comparable accounts

  2. Sometime the principles of AS are against the tradition

  3. It leads to rigidity and eliminates flexibility

  4. It flouts the law of the land.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The disadvantage of accounting standard involves the inflexible framework the firm must comply with. Each firm face different experience while preparing financial statement. It facilitate the comparison of non comparable accounts.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

The accounting standards are issued for the purpose of____________.

  1. Harmonizing accounting policies

  2. Elimination of non-comparability between financial statements

  3. For improving the reliability of financial statements

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The basic objective of accounting standards set to make financial statement more meaningful and comparable. Accounting standards provides a standards set of accounting policies, procedures, valuation methods and disclosure requirements on the basis of which financial statements are prepared.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

How many Accounting Standards have been issued in India so far?

  1. 28

  2. 32

  3. 30

  4. 27
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In India, Standards of Accounting is issued by the Institute of Chartered Accountants of India (ICAI). 

The Council of the Institute of Chartered Accountants of India constituted Accounting Standards Board (ASB) on 21st April, 1977 recognising the need for Accounting Standards in India.

The Council of the Institute of Chartered Accountants of India has so far issued thirty two accounting standards.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Which of the following statement is true?

  1. So far 28 Accounting standards have been issued in India

  2. Non-compliance of accounting standards is a criminal offence

  3. Accounting Standards are issued by CBDT

  4. Accounting Standard Board (ASB) was set up in 1977
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Recognizing the need to have a common platform for diversified accounting policies and practices in India and keeping in view the International development, the Institute of Chartered Accountants of India has set up a governing body i.e. Accounting Standard Board in 1977. 

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Generally Accepted accounting principles can be applied to the financial statements in which of the following ________.

  1. Sole proprietor

  2. Partnership firm

  3. Corporate body

  4. All the three
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Accounting is based on the certain principles which are known as Generally Accepted Accounting Principles. These are applicable to all kind of ownership.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Select the correct statement.

  1. Representative of political parties also is a member of ASB in India

  2. Accounting standards issued by ICAI are mandatory in India

  3. Accounting Standards are true copy of International Accounting Standards.

  4. Accounting standard once issued cannot be withdrawn
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Indian Accounting Standards issued by the the Institute of Chartered Accountants of India are followed by the Indian companies. This is governed by Accounting Standard Board which was set up in 1977.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

The Accounting standards are mandatory for _________.

  1. Charitable organization

  2. Government departments

  3. Companies

  4. Central Government
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Institute of Chartered Accountants of India has issued various accounting standards. It is mandatory for all the companies to follow these.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Different accounting policies can be adopted in following area(s) _______.

  1. Charging depreciation

  2. Investment valuation

  3. Inventory valuation

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Consistency is the basic assumption and it is assumed that various policies or methods adopted by the firm while preparing the financial statement are consistent from one period to another. However, different firms may follow the different accounting policies on depreciation, investment valuation or inventory valuation.